Business
Calumet Specialty Products Partners, L.P. Announces Strategic Divestiture of San Antonio Refinery and Related Assets
INDIANAPOLIS, Nov. 11, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a
About this update from Calumet, Inc
[{"type":"text","content":" INDIANAPOLIS, Nov. 11, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the \"Partnership,\" \"Calumet,\" \"we,\" \"our\" or \"us\"), a leading independent producer of specialty hydrocarbon and fuels products, today announced that it has closed on the sale of its San Antonio, Texas refinery and related assets including a crude oil terminal and pipeline to Starlight Relativity Acquisition Company LLC (\"Starlight\") with an effective date of November 1, 2019. Starlight agreed to pay $63 million in cash for the plant, property and equipment, plus adjustments for net working capital, inventories and post-closing amounts. In a related transaction, Calumet entered into a Settlement and Release Agreement with TexStar Midstream Logistics, L.P. (\"TexStar\") settling all outstanding litigation between the two parties which will result in the release of a $38 million balance sheet liability. \nTransaction Highlights:\n$63 million sale price plus net working capital and inventories Release of $38 million balance sheet liability Further de-levers the company Reduces annual maintenance capital spending, improving future cash flow\"The divestment of the San Antonio refinery represents another step forward in Calumet's strategic transformation,\" said Tim Go, Chief Executive Officer of Calumet. \"This transaction further de-levers Calumet's balance sheet, reduces earnings volatility by lowering our exposure to fuels refining, and allows the Partnership to focus its time and capital more intently on our higher-return core Specialty Products business.\"\nGo concluded, \"I want to thank our employees at San Antonio for their continued hard work and dedication, particularly this past year where they have delivered significant improvement to both our operational and financial performance. These step-change improvements made this transaction a win for our employees, Calumet, Starlight and the community, and we are pleased to see that the San Antonio refinery and its employees have found a new home for the long-term.\"\nEvercore acted as general advisor and Vinson & Elkins L.L.P. acted as legal advisor. The Partnership will provide further information with respect to the transaction in a Current Report on Form 8-K, which will include pro forma financial statements reflecting the impact of the transaction.\nAbout th...